couran cove island resort south stradbroke island … · with and subject to our complete valuation...

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TABLE OF CONTENTS

1 EXECUTIVE SUMMARY...................................................................................................................................1

1.1 SUBJECT PROPERTY..........................................................................................................................................11.2 INSTRUCTIONS .................................................................................................................................................11.3 PREPARED FOR................................................................................................................................................11.4 BRIEF DESCRIPTION..........................................................................................................................................11.5 DATE OF INSPECTION .......................................................................................................................................21.6 DATE OF VALUATION .......................................................................................................................................21.7 GENERAL COMMENTS .....................................................................................................................................21.8 CRITICAL CONDITIONS ....................................................................................................................................31.9 VALUATION .....................................................................................................................................................4

2 INTRODUCTION .............................................................................................................................................5

2.1 INSTRUCTIONS .................................................................................................................................................52.2 MARKET VALUE ...............................................................................................................................................52.3 DATE OF INSPECTION .......................................................................................................................................52.4 DATE OF VALUATION .......................................................................................................................................52.5 BASIS OF VALUATION .......................................................................................................................................52.6 QUALIFICATIONS AND DISCLAIMERS .................................................................................................................6

3 PROPERTY SEARCH DETAILS ..........................................................................................................................8

3.1 REAL PROPERTY DESCRIPTION ..........................................................................................................................83.2 REGISTERED OWNERS ......................................................................................................................................83.3 EASEMENTS AND ENCUMBRANCES....................................................................................................................83.4 LOCAL AUTHORITY ..........................................................................................................................................83.5 TOWN PLANNING ............................................................................................................................................83.6 CONTAMINATION AND ENVIRONMENTAL FACTORS ...........................................................................................8

3.6.1 Contamination......................................................................................................................................83.6.2 Environmental Factors .........................................................................................................................9

3.7 HERITAGE IMPLICATIONS ..................................................................................................................................9

4 PHYSICAL SITE DETAILS................................................................................................................................10

4.1 SITUATION AND LOCALITY/HISTORY ................................................................................................................104.2 ROADS AND ACCESS.....................................................................................................................................104.3 SERVICES AND AMENITIES...............................................................................................................................114.4 LAND DESCRIPTION .......................................................................................................................................11

5 IMPROVEMENTS...........................................................................................................................................13

5.1 GENERAL DESCRIPTION .................................................................................................................................135.2 CONSTRUCTION ............................................................................................................................................145.3 FIXTURES AND FITTINGS...................................................................................................................................145.4 BUILDING SERVICES .......................................................................................................................................145.5 OTHER IMPROVEMENTS..................................................................................................................................145.6 CONDITION AND APPEARANCE .....................................................................................................................155.7 STRUCTURAL SURVEY / PEST & TERMITE INFESTATION ........................................................................................155.8 UTILITY SERVICES............................................................................................................................................155.9 PHOTOS........................................................................................................................................................15

6 COURAN COVE RESORT COMMUNITY ......................................................................................................17

7 VALUATION CONSIDERATIONS..................................................................................................................18

7.1 HIGHEST AND BEST USE ..................................................................................................................................187.2 VALUATION METHODOLOGY .........................................................................................................................187.3 SALES EVIDENCE............................................................................................................................................187.4 GOODS AND SERVICES TAX (GST).................................................................................................................19

8 MARKET COMMENTARY..............................................................................................................................20

9 GENERAL COMMENTS ................................................................................................................................21

10 VALUATION..................................................................................................................................................22

Unit 4624 Couran Cove Resort, South Stradbroke Island, Gold Coast, Queensland 4216File No: GC-277549:JB:es

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1 EXECUTIVE SUMMARY

This valuation is based on certain conditions and contains a number of qualifications. Do notrely on this executive summary alone. This executive summary should be read in conjunctionwith and subject to our complete Valuation Report. Reliance should only be placed on thisreport upon sighting a signed original document.

1.1 Subject Property Unit 4624, Couran Cove Resort,South Stradbroke Island, GoldCoast, Queensland 4216

1.2 Instructions In this matter we have been instructed by Lachlan McIntosh of IslandResorts (Apartments) Pty Ltd to assess the Market Value of theproperty described herein for asset review purposes.

1.3 Prepared For Island Resorts (Apartments) Pty Ltd

Attention: Lachlan McIntoshEmail: [email protected]

This valuation has been prepared in accordance with AustralianProperty Institute Standard for Valuation Reports.

1.4 Brief Description Couran Cove Island Resort, which is located on South StradbrokeIsland, is a 20-minute ferry ride from Runaway Bay Marina.

Couran Cove Island Resort was developed as an eco-sustainablefour-star resort in 1998 and consists of:

Various accommodation options (studios, eco-cabins, villas) Extensive recreational facilities Hotel Marina Dining venues Conference facilities

The subject property comprises a refurbished single level lagoon lodgeapartment having a southerly aspect to the Lagoon. It has a strataarea of 117m² and accommodates 2 bedrooms and ensuite. The unitis in duplex configuration.


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Over the past 12 months the resort has been refurbished to a highstandard including upgrades to individual apartments, refurbishmentof sports, conference and recreational facilities including the surf club.

The resort is fully staffed and has been re-launched with aprofessionally conducted marketing campaign by new owners IslandResorts Group.

1.5 Date of Inspection 23 January 2017

1.6 Date of Valuation 23 January 2017

1.7 General Comments

Anticipateddemand for theproperty:

The property will be attractive to investors seeking a satisfactory returnon investment and South-East Queensland residents seeking a life styleinvestment.

Estimated sellingperiod (combinedwith a professionalmarketingcampaign):

3-6 months supported by financial reports.

Likely buyer profile

includes:

Investors seeking a relatively affordable investment; Property can be placed in the rental pool or retained by the

owner for personal use.

Positive attributes

include:

Both the resort facilities and the individual rooms are beingrefurbished to a minimum 4 star standard.

Located on an island within relatively easy distance to the GoldCoast and Brisbane.

Very extensive recreational facilities, dining options andconference facilities.

Negative factors

include:

Located on an island which reduces the accessibility; Previous operator allowed the business to decline and the resort

required substantial investment in promotions to improve its costand nightly rate;

Market for strata title apartments such as these has beenadversely impacted by the poor financial performance of similarcomplexes.


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Threats: Lack of promotion and financial performance of the resortoperator; and

Recreational and conference facilities are not fully maintainedand their benefits exploited.

Opportunities: Sound management practices will improve the overalloccupancy of the resort.

Potential to further increase patronage to the Island.

Cash Flow Profile: Highly dependent upon the performance of the resortmanagement.

Asset Management: The subject units are valued on the basis that they are fullyrefurbished.

The resort requires ongoing sound management to fully exploit theopportunities available in a highly competitive market.

1.8 Critical Conditions The units are fully refurbished; There is ongoing maintenance of all resort infrastructure including

recreational facilities; Marketing will be undertaken on a fully funded basis as

appropriate; The town centre will be refurbished and occupied; There is ongoing professional management of the resort; There is an ongoing reduction in the stock currently listed with non-

resort appointed agents; Maintenance of body corporate levies at current levels.


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1.9 Valuation

Subject to the stipulations and conditions contained within the body of this report, it is ouropinion that the Market Value of the subject apartment for Asset Review Purposes as at 23January 2017 is:

$330,000

(Three Hundred and Thirty Thousand Dollars)

GST Free

VALUER

JOHN BURKECertified Practising ValuerRegistered Valuer No. 2840 /VAL 029151TAYLOR BYRNE

ENDORSED

LAURIE HAMILTON AAPIRegistered Valuer No. 1213Certified Practising ValuerDIRECTORTAYLOR BYRNE

The counter signatory verifies that this report is genuine and endorsed by Taylor Byrne.The opinion of value expressed in this report has been arrived at by the prime signatory alone


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2 INTRODUCTION

2.1 Instructions

In this matter we have been instructed by Lachlan McIntosh of Island Resorts (Apartments) PtyLtd to assess the Market Value of the property described herein, for Asset Review purposes.

The Interest being valued is the freehold.

2.2 Market Value

Market value is defined as the estimated amount for which an asset or liability shouldexchange on the valuation date between a willing buyer and a willing seller in an arm’s lengthtransaction, after proper marketing and where the parties had each acted knowledgeably,prudently and without compulsion.

2.3 Date of Inspection

23 January 2017

2.4 Date of Valuation

23 January 2017

2.5 Basis of Valuation

This valuation is made conditional upon the following:

1. That the property complies with all statutory requirements with respect to health, building,town planning, and fire safety regulations, and that all appropriate approvals have beenobtained from the relevant authorities.

2. That a detailed structural survey would not reveal defects other than the maintenanceitems referred to in the body of this report.

3. That the improvements are sited within the title boundaries and without encroachment byadjoining properties.

4. That a comprehensive test of soils on the land would not reveal contamination of any kindwhich could affect the utility of the property.

5. That there are no orders of compulsory acquisition for the whole or part of the propertycurrently issued by any Government Authority.

We recommend you make your own enquiries in regards to the above conditions. Should anyissues arise, this report should be returned to the valuer for comment. We reserve the right toreview and or amend our report if necessary, at that time.


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2.6 Qualifications and Disclaimers

(i) This valuation has been prepared on specific instructions from Lachlan McIntosh ofIsland Resorts (Apartments) Pty Ltd, for Market Value purposes. The report is not to berelied upon by any other person, or for any other purpose. We accept no liability tothird parties, nor do we contemplate that this report will be relied upon by third parties.Any parties who may seek to rely on this report must seek the specific written consentof the valuer. We reserve the right to withhold our consent or to review the contents ofthis report in the event that our consent is sought. In any event this valuation cannotbe assigned if the valuation is older than 90 days.

(ii) We state that this report is for the use only of Island Resorts (Apartments) Pty Ltd. Thereport is to be used for no other purpose, and no responsibility is accepted to any thirdparty for the whole or part of its contents and annexures. No responsibility will beaccepted for photocopied signatures.

(iii) This valuation cannot be relied upon for mortgage security purposes.

(iv) This valuation is current as at the date of valuation only. The value assessed herein maychange significantly and unexpectedly over a relatively short period (including as aresult of general market movements or factors specific to the particular property). Wedo not accept liability for losses arising from such subsequent changes in value. Withoutlimiting the generality of the above comment, we do not assume any responsibility oraccept any liability where this valuation is relied upon after the expiration of three (3)months from the date of the valuation, or such earlier date if you become aware ofany factors that have any effect on the valuation.

(v) Buildings, including houses, built prior to 2004 may contain asbestos related products.Taylor Byrne is not expert in detection, remediation or disposal of asbestos orcontamination of any kind. It is recommended that advice be sought from experts inthat field should that issue affect your reliance on this valuation. The ProfessionalIndemnity Insurance Policy for Taylor Byrne does not cover losses arising from anyasbestos issues.

(vi) We advise we do not have a pecuniary or other interest that would conflict with theproper valuation of the property.

(vii) Taylor Byrne provides no warranty for claims arising out of, based upon directly orindirectly resulting from or in consequence of, or in any way involving the depreciation,failure to appreciate, or loss of any investments and/or property for investmentpurposes when such depreciation, failure to appreciate or loss is a result of normal orabnormal fluctuations in any financial, stock or commodity, or other markets which areoutside the influence or control of the valuer.


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(viii) This valuation is prepared on the assumption that the lender as referred to in thevaluation report (and no other), may rely on the valuation for mortgage financepurposes and the lender has complied with its own lending guidelines as well asprudent finance industry lending practices, and has considered all prudent aspects ofcredit risks for any potential borrower, including the borrower’s ability to service andrepay any mortgage loan. Further, the valuation is prepared on the assumption thatany such lender is providing mortgage finance at a conservative and prudent loan tovaluation ratio. This clause (Prudent lenders Clause) only applies if the lender is not alender regulated by the Banking Act of 1959.”

(ix) This valuation has been based on the condition of the structural improvements and theproperty in general as at the date of inspection. If the property has to be sold incircumstances where its condition has deteriorated and/or essential fixtures/fittingshave been removed there is likely to be a significant fall in value compared to thecurrent assessment. Under these circumstances neither the valuer nor Taylor Byrne willbe responsible for any reduction in value.

(x) Unless stated as otherwise in this report we advise that we have not searched or beenprovided with a copy of the current Title or Registered Plans and that any dimensions orland areas quoted in this report have been obtained from third party informationsources and whilst every endeavour has been made to verify such information weaccept no responsibility for inaccuracy of any information provided and relied upon.

(xi) The instructing party acknowledges its responsibility for full disclosure of all relevantinformation and undertakes to provide all relevant documents in its possession thatmay have an effect on the service to be provided. This valuation is based uponinformation reasonably available to the valuer as at the date of issue in accordancewith usual valuation practices.

(xii) The subject property forms part of a community title, or multi lot development that mayincorporate common property, a community management scheme and a bodycorporate structure. We advise that we have not undertaken a search of the BodyCorporate records. We are therefore unable to comment on the operation of the bodycorporate, it’s financial position, or any outstanding requisitions or legal liabilities thatmay exist. Our valuation is conditional upon the Body Corporate being fully operationaland funded to maintain the common property to a high standard. Should subsequentsearches reveal otherwise we reserve the right to review this valuation.


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3 PROPERTY SEARCH DETAILS

3.1 Real Property Description

An Estate in Fee Simple in the County of Ward, Parish of Currigee being Lot 40 on Building UnitsPlan 106991.

3.2 Registered Owners

Island Resorts (Apartments) Pty Ltd

3.3 Easements and Encumbrances

We have not carried out a title search in this case, and our report is issued on the assumption thatthere are no onerous easements, encumbrances, leases or impediments on title which wouldaffect value.

3.4 Local Authority

City of Gold Coast

3.5 Town Planning

Within Gold Coast City Plan 2016, the subject property is zoned “Special Purpose” and is in the“Special Development Areas” precinct. In particular, the Resort’s development is controlled byits own regulatory instrument being an Approved Mixed Use Development Act 1993.

The current use complies with the zoning, and has no material effect on the market value ofthe property.

3.6 Contamination and Environmental Factors

3.6.1 Contamination

A search of the Department of Environment and Heritage Protection (EHP) has not beenundertaken.

No indication of contamination was apparent during inspection. However, the reader shouldbe aware that this valuation has been prepared without the benefit of appropriate tests orexpert advice and presupposes that no contamination exists that would adversely affectmarket value.


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The client acknowledges and recognises that the valuer is not an expert in identifyingenvironmental hazards and compliance requirements affecting properties. The valuer hasendeavoured to identify all matters of environmental concern and the effect they might haveon the value of the property. However, the valuer will not be held liable nor responsible forhis/her failure to identify all such matters of environmental concern and the impact which anyenvironmental related issue has on the property and its value including loss arising from sitecontamination; or the non-compliance with environmental laws; or cost associated with theclean-up of the property to which an environmental hazard has been recognised, includingaction by the Environmental Protection Agency to recover clean-up costs pursuant to therelevant Environmental Protection Act.

3.6.2 Environmental Factors

We advise that we have not undertaken a formal search to confirm whether or not the propertyis subject to flooding, or has previously been flooded. We recommend you undertake your ownenquiries in this regard. Should any issues arise this report should be referred back to the valuerfor comment and or amendment.

3.7 Heritage Implications

None apparent


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4 PHYSICAL SITE DETAILS

4.1 Situation and Locality/History

Couran Cove Island Resort was developed in 1998 by InterPacific Resorts, as a fully self-supporting development incorporating many state-of-the-art environmental and sustainabilityfeatures. It is located on South Stradbroke Island just off Queensland’s Gold Coast and isaccessed via Runaway Bay Marina, 15 minutes by ferry.

Facilities include 352 accommodation units, four dining outlets, conference facilities, a 102-berth marina, an ocean-front surf club and a full resort infrastructure, including its own powerstation, sewerage and water treatment plants. Accommodation at the resort ranges fromwaterfront, hotel-style rooms and suites to two and four bedroom villas plus there are 1, 2 and 3bedroom eco-cabins.

InterPacific then operated Couran Cove and owned about half of the accommodation units;the remaining units were owned by third-parties.

The resort was placed into a fully funded members’ voluntary liquidation in 2011.

The resort and all apartments owned by InterPacific were then sold to CCH Dowling Pty Ltdand related entities who operated the resort up until mid-2016 when Eureka Group Holdingsand Island Resorts Group took over ownership and management of the facility.

4.2 Roads and Access

Access to the resort is via ferry service from Runaway Bay Marina for staff, via ferry service fromHope Harbour for guests, also private boat and taxi services. Internal roads are bitumensealed and generally in a good state of repair. Improvements to the carriageways arecurrently underway.


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4.3 Services and Amenities

The resort is totally self-sufficient in the supply of water and electricity and the disposal of wastewater. Supplies are barged to the island from Coomera Marine Precinct, Coomera.

4.4 Land Description

The parent property consists of approximately 55 hectares and is irregular in shape. Part of theland has been excavated to form a marina basin and other areas have been excavated toform an inundated fish habitat.

The subject property has been suitably identified through reference to a Cadastral Map andBuilding Units Plan.


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5 IMPROVEMENTS

5.1 General Description

Erected on the land and assumed to be contained wholly within the Title boundaries, theproperty is improved with a 17 year-old 4-star standard resort hotel.

Couran Cove Resort incorporates a wide range of recreational and water sport activities, dayspa, 25 metre lap pool, general store, various dining options, conference venues anddeveloping town centre.

The accommodation options range from marina hotel suites to 4 bedroom villas and 3 types ofeco cabins.

The subject apartment is a Lagoon Lodge (duplex) overlooking the Lagoon. It is positionedwithin a single storey wharf-like structure positioned on the northern side of the lagoon.

The unit is self-contained with ensuite and kitchen. Including balcony, the apartment has anarea of 117m².


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5.2 Construction

Footings: Reinforced concrete footings to timber uprightsFloor: TimberExternal Walls: HardiboardInternal Walls: Plaster boardWindows: Aluminium frameCeilings: Corrugated iron

5.3 Fixtures and Fittings

Kitchen: Stainless steel sink, laminated cupboards, stove top,convection oven, gas hotplates and timber floor.

Ensuite: Set-in bath, shower recess, marble tile floor and walls, stonetop vanity, toilet suite, wall mirror and tiled floor and walls.

5.4 Building Services

Air-conditioning: Split cycleFire Services: As per legislative requirements

The hotel suites are within easy walking distance to the main hotel facilities.

5.5 Other Improvements

Hotel foyer and 24-hour reception Function rooms Restaurants Swimming pools Saunas Full size tennis courts Gym, massage and beauty treatments Sports oval Kids club Beach volleyball courts Basketball courts Running track Squash courts Water sports precinct Helipad x 2 Ocean front surf club General store Environmental centre which is in the process of being converted into a town centre. Virtual Reality entertainment centre


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5.6 Condition and Appearance

The hotel common areas (foyer/restaurants etc.) and hotel rooms are currently in goodcondition. This valuation assumes that the resort facilities including the function centre,restaurants, recreational and sports facilities are maintained to a high standard. The subjectunit is in good overall condition and has been recently renovated.

5.7 Structural Survey / Pest & Termite Infestation

This report is not a structural survey and is not intended as such.

We have carried out an inspection of exposed and readily accessible areas of theimprovements. However, the valuer is not a building construction or structural expert and istherefore unable to certify the structural soundness of the improvements. Readers of this reportshould make their own enquiries.

The inspection did not reveal any obvious past or present termite infestations within reasonablyaccessible areas. The client acknowledges that we are not pest inspectors or experts in thisfield. The absence of pests can only be determined by an expert. If you have any concerns,we recommend you seek independent advices. Our report should be returned for commentand/or amendment at that time.

5.8 Utility Services

We advise that we have not tested any of the services. Should any utility concerns becomeapparent, this report should be returned to the valuer for comment/amendment at that time.

5.9 Photos


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6 COURAN COVE RESORT COMMUNITY

The resort was opened in 1998 on a 55-hectare island site. Developed onsite are 352accommodative units, hotel suites, villas, cabins and marine lodges, 3 restaurants, conferencevenues, function rooms, 2 gymnasiums, large resort style pool, waterfront reception andadministration building, jetty and 102 berth marina.

Recreational facilities include 3 wading pools, 25 metre heated lap pool, rainforest boardwalkand sports centre.

Couran Cove has a two-tiered Body Corporate structure being:

Couran Cove Resort Community Body Corporate; and

Residential Body Corporates covering marine apartments, lagoon lodges, broad watervillas and eco lodges.

Under Craig Dowling’s tenure in 2016, Ramada removed its branding after the facility did notmeet its standards. Shortly after Eureka Group Holdings and Island Resorts Group took overmanagement and ownership and have commenced undertaking major upgrade of thecommon amenities and individual apartments. Approximately nine million dollars has beenspent to date.

The unit has recently been renovated and appears in good overall condition.


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7 VALUATION CONSIDERATIONS

7.1 Highest and Best Use

Highest and best use is defined by the Australian Property Institute as:

“The most probable use of a property which is physically possible, appropriately justified,legally permissible, financially feasible, and which results in the highest value of the propertybeing valued.”

In this instance, we consider the highest and best use of the properties is inclusion into therental pool of the resort to take advantage of the likely influx of short and long stay guests as aconsequence of the re-launch of the resort.

7.2 Valuation Methodology

The most appropriate method of valuation is considered to be by Direct Comparison with salesevidence in the immediate locality.

For comparison purposes we have had regard to the sales evidence as detailed in thefollowing schedule.

7.3 Sales Evidence

Sales recorded in the table below range from sales from the owner, sales by external agentsand sales by private negotiation. We note there are numerous inconsistencies in sale priceswhen making comparisons between units and this is not uncommon for island localities. Weconsider the sale of Lot 195 by the prior owner to be above market levels.

Address Sale Price Sale Date

Lot 195 Island Street, South Stradbroke $240,000 26 August 2016

Brief Description: Comprises a one bedroom, one bathroom marina apartmentpositoned on the top floor. Favourable marina views. Floor area:74sqm. Sold at an inflating price by marketing group.

In Comparison toSubject:

Smaller unit in similar condition, superior aspect. Overall inferior.


Lot 41 Island Street, South Stradbroke $255,000 11 April 2016

Brief Description: Comprises an unrenovated two bedroom, one bathroom,freestanding lagoon lodge. Favourable water views in asoutherly direction. Floor area: 126sqm.


Larger unit in inferior condition, adjoins subject unit. Overallinferior.


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Lot 20 Island Street, South Stradbroke $400,000 21 November 2016

Brief Description: Comprises an unrenovated freestanding timber and metal roof 4bedroom, 2 bathroom dwelling having a southerly aspect to thecanal. Floor area: 209sqm.


Larger property in inferior condition, similar outlook. Overallsuperior.

In about mid 2013 there was an initial sales marketing campaign launched which resulted inthe previous owners achieving 9 sales.

Eureka Group Pty Ltd has commenced a leasing up and marketing campaign and to datehave 25 contracts issued for various units with one contract having reportedly settled.

The subject unit is reportedly under contract for $420,000.

Since the above sales evidence has occurred the resort and its associated facilities haveundergone major refurbishment works and we believe a higher value can be attributed to thesubject unit than what sales 1-3 indicate. Due to the unique location and character of CouranCover Resort we do not believe it is prudent to source sales evidence from outside SouthStradbroke Island.

7.4 Goods and Services Tax (GST)

Valuations of residential property are undertaken on the basis that GST is not applicable. Assuch, our valuation is made on a GST free basis. Further, it is assumed that the subject propertywill transact as a residential property between parties, not registered and not required to beregistered for, GST.

The lender should satisfy themselves of the GST position of the borrower prior to extendingfunds.


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8 MARKET COMMENTARY

We have had regard to the following when considering the subject apartments and theirperception by the general market.

Introduction

The sale to individual purchasers of strata titled rooms and apartments in motels, hotels andresorts has been a significant marketing trend in the Australian hotel and resort market from1998 to the current day.

Both new and refurbished motels, hotels and resorts have been strata titled and sold toinvestors on the basis of either income pooling, a leaseback agreement or a conventionalmanagement rights agreement.

Market Segmentation

Under the terms of the town planning approval we understand the subject apartments aresuitable for long term accommodation. This is considered to be a significant positive froma marketability perspective.

The buyer profile for this style of property would be limited mainly to investors, due to thelimitation on occupation or to lifestyle buyers, as a result of the resorts isolated location.

The value of ‘short term’ accommodation apartments has been dramatically affectedover recent years. These price reductions are the result of poor returns, reduced roomrates, high operating costs and non-permanent occupation. This is a concern for thosewho purchase the unit as an investment.

Industry Issues

Although market sentiment towards the ownership of strata title resort and hotel rooms hasimproved lately there still remains a number of issues as follows:

Historically poor profitability of most hotels and resorts; Historically poor returns for the purchasers of the strata units; Problems with the method of income distribution; The weakness of the resale market for individual hotel/resort rooms and apartments; and The restricted availability of finance for buyers of individual rooms, particularly in the resale

market.

Resale Performance

The market for re-sales of strata hotel and resort rooms has varied considerably from project toproject.

Without the marketing programs used to sell the developer stock, it can be difficult to sellindividual resale units.


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9 GENERAL COMMENTS

We understand the resort was built under an approved Plan of Development (POD). Thisapproved POD remains in place. Therefore, should the property be destroyed it is reasonableto assume that relevant authorities would permit the reconstruction of the resort in a similarmanner.

Eureka Group Holdings has been engaged to provide management and marketing expertiseand this, we consider, will have a beneficial impact on the financial performance of the resort.

It appears that the subject unit will be placed into the rental pool and be made available tothe resort management for short term rentals. The financial returns from the apartment will beheavily reliant upon the performance of the resort management, Gold Coast Tourism inparticular, and the global tourism market generally.

Overall the value of the individual apartment on resale will be dependent upon the financialperformance of the entire resort.


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10 VALUATION

Subject to the stipulations and conditions contained within the body of this report, it is ouropinion that the Market Value of the subject apartment for Market Value Purposes as at 23January 2017 is:

$330,000

(Three Hundred and Thirty Thousand Dollars)

GST Free

VALUER

JOHN BURKECertified Practising ValuerRegistered Valuer No. 2840 /VAL 029151TAYLOR BYRNE

ENDORSED

LAURIE HAMILTON AAPIRegistered Valuer No. 1213Certified Practising ValuerDIRECTORTAYLOR BYRNE

The counter signatory verifies that this report is genuine and endorsed by Taylor Byrne.The opinion of value expressed in this report has been arrived at by the prime signatory alone.

couran cove island resort south stradbroke island … · with and subject to our complete valuation...

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